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Official sources said the Enforcement Department (ED) conducted checks against Jet Airways founder Naresh Goyal on Wednesday as part of a new money laundering investigation against him and others.
The federal agency raided six-seven buildings in Mumbai and a few other locations as part of an ongoing investigation under the Prevention of Money Laundering Act (PMLA).
The money laundering case stems from an FIR report recently filed by the Central Bureau of Investigation (CBI) against Jet Airways, Goyal, his wife Anita and some former executives of the company in connection with an alleged ₹538 crore fraud in Canara Bank.
In February, the Bombay High Court dismissed a money laundering case filed by the ED against Goyal and his wife on the basis of an FIR report to Maharashtra Police investigating fraud and forgery charges in a complaint by Akbar Travel.
A section of Justices Revati Mohite Dere and Prithviraj Chavan ECIR (Enforcement Status Information Report or equivalent ED) registered on 20 February 2020 annulled and all proceedings against Goyals on grounds of being “unlawful and contravening” the law.
The court order came after the police filed a closure report, in which they stated that they found no substance in the complaint and that the dispute appeared to be civil in nature. Since the ED case was based on the police FIR and it was the original offense to file the money laundering case, the court declared it overturned.
The CBI FIR came on the basis of Canara Bank’s complaint, claiming that it sanctioned credit and loan limits to Jet Airways (India) Limited (JIL) of Rs.848.86 crore, of which Rs.538.62 crore is outstanding.
Jet Airways has since been suspended and CIB said the account was declared a “fraud” on July 29, 2021.
The bank alleged that a forensic review of JIL showed that it had paid Rs. 1,410.41 crore to ‘related companies’ out of total commission expenses, thus misappropriating funds from JIL.
“According to the sample agreement of Jet Airways (India) Ltd (JIL), it was noted that the expenses of general selling agents (GSA) would be borne by GSA itself and not by JIL. However, it was noted that JIL paid various expenses amounting to Rs. 403.27 crore, which is not consistent with the GSA,” the complaint, which is now part of the CBI FIR, alleged.
It said personal expenses, such as staff salaries, phone bills and car expenses, of Goyal’s family were paid for by JIL.
Among other allegations, it emerged during the forensic audit that funds were also stolen through Jet Lite (India) Limited (JLL) by making advance payments, investing and later writing off by making provisions.
The complaint alleged that JIL transferred funds belonging to its subsidiary, JLL, in the form of extended loans, advances and investments.
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